Tesla's market value falls below $1 trillion amid declining European sales

By Alimat Aliyeva

Tesla's market capitalization has dropped below $1 trillion for the first time in three months as its shares continue to slide.

On February 25, Tesla’s stock fell by 8.4% to $302.8, marking its lowest level since November 7, 2023. The decline is largely attributed to weakening sales in Europe, where Tesla has faced a significant downturn.

According to the German trade group VDA, Tesla's car sales in Germany plummeted by 60% in January, while sales in France dropped by 63%. In the UK, despite a 42% expansion in the overall electric vehicle market, Tesla's sales declined by 8%.

Analysts suggest that Elon Musk's increasing involvement in U.S. politics may be raising concerns among European consumers, though they caution against drawing conclusions from one month’s data.

Despite these setbacks in Europe, Tesla continues to see strong demand in markets like China. The company's ability to adapt to local conditions, improve affordability, and enhance its charging infrastructure will be crucial in reversing its European decline. As competition in the EV sector intensifies, Tesla may need to focus on innovation, customer service, and geopolitical strategy to sustain its global leadership.